The Water & Sewer Advisory Board on Wednesday unanimously approved its recommendations for water and sewer rate increases for fiscal year 2026, opting for a 10.5% water rate increase and a 10% sewer rate increase.
The board was given three options for both the water and sewer rates from consultant Matthew Abrahams of the Abrahams Group at its meeting the previous week. They ranged from a small increase in FY 26 to a moderate but constant increase over the next 10 years to a 25% hit in FY 26 with steps downward over following years.
Member Don Sutherland recommended a “softer landing” after the FY 25 increase of 40% hit some residents hard.
“We have to be sensitive to the populace,” he said, noting that 60% of the town’s residents are connected to municipal water.
Member Rob Scott initially preferred the steady plan of a 10.5% increase each year. But he also thought a bigger jump in FY 26 would make sense given the upcoming property tax increases starting in FY 27 to fund school projects, town capital expenses and the proposed connection to the Massachusetts Water Resources Authority. If expenses were not as high as projected, then Scott said the town “would be up in the saddle and riding easy.”
Chair Paul Gallagher recommended the steady 10.5% annual increase, and Scott and Sutherland agreed. Gallagher said this would steadily build retained earnings and likely avoid bigger future hikes.
Town Manager Elaine Lazarus reminded the board that it would be making annual recommendations to the Select Board, providing flexibility if circumstances change in subsequent years.
Resident Ken Weismantel questioned whether Abrahams factored in conservation requirements that the Massachusetts Water Resources Commission (WRC) would require to establish an MWRA connection. He has been a WRC member for a decade and has been offering advice to the WSAB.
“The real pain is for the little old couples still trying to survive in Hopkinton,” he added. He wanted to see the lowest tier at a lower percentage increase.
Assistant Town Manager Lance DelPriore told members that Hopkinton has a three-tier system based on water usage. He cautioned against a decrease in the lower tier rate because no cost analysis has been done. He called it “a little bit hazardous.”
Lazarus added that there is a program for lower-income residents. She could look at other discounts if they are deemed necessary.
Department of Public Works Director Kerry Reed shared that the Select Board previously authorized annual sewer user fee and water user fee discounts of up to $200 per year for each water and sewer account for residents who meet need-based qualifications.
Weismantel later brought up the need to replace the town’s water meters in order to be compliant with WRC and national standards. The national standard, he explained, calls for meters to be replaced every 10-12 years. Some meters in Hopkinton are 30 years old.
Changing the meters would allow for quarterly or monthly billing, he previously said. This would be helpful in detecting leaks and water conservation. The new meters also would calculate water use on a per gallon basis rather than per cubic feet.
Reed noted previously that because of the number of DPW capital expenses and the Select Board’s mandate for this year’s budget to show fiscal restraint, she could not request new meters and the employees to monitor their implementation in her FY 26 budget.
Westborough infrastructure upgrade to impact town sewer rate
While the sewer rate remained flat last fiscal year, upcoming capital expenses will require it to go up, according to the consultant’s analysis.This led the WSAB to recommend a 10% FY 26 sewer rate increase.
One major factor is that Westborough, which takes much of Hopkinton’s sewer flow, will be investing $17 million in infrastructure improvements over the next decade. To help pay for this project, Hopkinton likely will face a charge of up to $75,000 annually beginning in FY 27. This was incorporated into the three suggested sewer rate proposals.
“The bigger part is that our 10-year capital plan has in total about $10 million worth in [capital expenses] in the sewer system,” said Gallagher.
The 10-year option the WSAB leaned toward potentially would raise the rate by 10% each year from FY 26-31. Then it would revert to no increase for the remaining years.
Select Board to get WSAB progress update
Gallagher said he intends to give the Select Board an update on the WSAB’s recommendations regarding the MWRA connection. He estimated that the town would need no more than 2.2 million gallons of water per day, noting that it was likely closer to 2 million GPD. A previous projection from the Pare Corporation, the town’s consulting firm, estimated 2.7 million GPD.
While the town currently buys 40% of its water from Ashland, Hopkinton’s intermunicipal agreement with that town expires on June 30, 2026. While previous discussions suggested purchasing more water from Ashland, it is unclear at this time whether Ashland will renew the IMA.
The original 25-year agreement with Ashland was executed in 1998. It was renewed in 2023 for three years. There is the possibility for two consecutive one-year extensions.
Said Gallagher: “No matter what we do, that’s a risk that we need to address.”
His hope is that there could be a long-term extension with Ashland, particularly because that water would be cheaper than purchasing MWRA water.
Even if the MWRA approves of a hybrid system, MWRA water won’t be available to Hopkinton until completion of the MWRA connection. That is anticipated to take place between 2030-32.
Gallagher said he would like the WSAB to discuss what would happen to the MWRA connection design if the flow rate were changed. Members previously speculated about a possible hybrid water system rather than full MWRA water usage.
He also questioned if “a significant treatment plant” could be used for the Fruit Street wells and possibly other wells. Gallagher said he would like the WSAB to have the ability to ask questions of Pare to determine if alternatives to the MWRA connection were explored.
“In my opinion, it is very significant that have to get the information out that we’re trying to reduce the cost,” said Eric Sonnett.
Replied Gallagher: “To be fair, no matter which of the projects that we do, the cost is going to go up significantly.”
0 Comments